Non Status Second Mortgage Secured Loans

You need to understand the different types of finance arrangement that are available internationally in order to determine which one suits you and your circumstances best.

International Mortgages

Depending on the country you’re interested in buying property in and on your own personal financial circumstances some home grown lenders offer straight mortgages for overseas property purchase.

Mortgage types and repayment methods are standard however there is often the added criteria that the purchaser is already a home owner and mortgages are usually only available for up to 70% of the purchase price. Buying in this way can remove a layer of confusion and complexity for the interested purchaser as the whole process follows the path they have likely taken for a domestic property purchase, but buying in this way can prove more costly. Don’t forget either that an international mortgage will likely be secured on the foreign property.

Local (Overseas) Mortgages

It is sometimes possible to raise a mortgage locally in the country you’re buying in. This is especially the case when one of the larger international banks has a subsidiary in that particular country or the country.

Expat Mortgages

As an expatriate it can make a lot of sense to purchase ‘back home’ either for investment purposes or as a base for you to return to at some point in the future.Some of the major high street lenders will charge you a bit of a premium for the ease of application and service they offer and it is worth while shopping round on the internet to see who else is offering specific expat mortgages.

Equity Release or Second Mortgage

This is the simplest and most popular being used currently for the purchase of second homes overseas. Because the housing market has significantly strengthened over the last 5 - 7 years many people have built up substantial equity in their homes, many are now releasing this ‘extra money’ to purchase property abroad in cash.

If you consider this you must accept that the additional sum you add to your mortgage will incur interest, it will have to be repaid over the term or at the end of the term of your mortgage and that the whole loan is secured on your home.

Stage Payments

If you purchase property off plan you may have the option to pay for your property via a series of instalments that you can save to fund during the build period. You will be required to pay a securing deposit up front and then your instalment dates and amounts will be written into the contract enabling you to budget accordingly. Clearly this method would particularly suit those with a high level of disposable income.